Growing your practice: Harnessing LinkedIn’s potential

10 January 2024 by National Bank Investments
financial advisor using the LinkedIn application on his mobile phone

Since the pandemic, 81% of financial advisors using social media report having gained assets thanks to their social media activity1. Among a wide social media landscape, LinkedIn is a prospecting tool of choice. Why? And how you, as an advisor, can optimize your reach and find potential clients on LinkedIn? Here are some effective practices.

Canada: a global LinkedIn leader

There are currently over 22 million LinkedIn members in Canada2, making it one of the countries with the most members in the world. And unlike other social media, which can be subject to fads or may become out of fashion, LinkedIn has been steadily gaining in popularity since its launch in 2002. This is good news for advisors as there’s growth in their potential reach.

Over 50,000 financial advisors are on LinkedIn from coast to coast. And they tend to be especially active since they2:

  • Visit LinkedIn 30% more than the average member
  • Share 511% more content

What’s more, LinkedIn is the dominant platform for asset managers to track, connect and stay up to date with financial advisors and RIAs.

A business-prone community

While social media often mix personal and professional life, LinkedIn positions itself as the world’s largest professional and business virtual network providing a targeted, relevant audience for advisors. According to LinkedIn Marketing Solutions, 4 of 5 members drive business decisions. Therefore, it provides direct access to a high proportion of senior executives, CEOs and entrepreneurs.

Another benefit is that LinkedIn users worldwide tend to be young3:

  • 22% are in the 18–24 age range
  • 60% are between 25 and 34 years old
  • 15% are between 35 and 54

The platform provides advisors with a prospecting tool for new clients who could benefit from their services.

A cost-effective marketing tool

A basic LinkedIn account is free and allows members to scale: reaching 15,000 users is just as easy as reaching 500.

By showcasing their skills, experience and service offering, advisors can build their brand and reputation. For instance, sharing a link to a blog post or posting a positive client review can help them stand out as a trustworthy professional and encourage users to get in touch.

Optimizing your profile, network and impact

To increase your impact on LinkedIn, there are several ways to optimize your profile. Here are the main quick wins:

  • Use a recent, professional headshot. Members with a photo get up to 9 times more connection requests4.
  • Provide up to date, complete skills, work and volunteer experience. Users who add 5 or more skills receive up to 17 times more profile views4.

Expand your LinkedIn network by importing your e-mail address book onto your profile or requesting new introductions. The objective is to have an audience of at least 500 connections so that you will appear more often in search results.

Furthermore, share your own, relevant content (e.g., articles, videos, podcasts) a few times a week to build your credibility. Share and/or comment other people’s posts regularly to stay top of mind. Join LinkedIn groups that target clients might belong to. Participating in discussions can help develop group members into advocates or prospects.

LinkedIn members are primarily looking to seize new opportunities, learn from leaders and experts, and improve their financial status.

Effective online prospecting

LinkedIn offers several tools for efficient prospecting. Advisors can for instance:

  • Ask existing clients for referrals and share testimonials, which can be an excellent source for new LinkedIn contacts
  • Use LinkedIn’s advanced search filters to narrow down their prospect search

But to set themselves apart from their competitors who, like them, use LinkedIn, successful advisors know the importance of defining their specific market niche based on territories, work fields, interests or else. Once that target market is identified, LinkedIn, thanks to its features and vast network, facilitates the advisors’ prospect search.

Want to learn more? Take our free “Social media for advisors: Growing your practice with LinkedIn” online training and earn 1 CE Credit/PDU. For more information, contact your NBI Sales Representative.

Sources:

  1. Putnam Social Advisor Survey 2021
  2. LinkedIn Pressroom (September 2023)
  3. www.statista.com (January 2023)
  4. LinkedIn — “Rock your profile” presentation

Learn more about virtual prospecting:

Build your book through virtual referrals

Virtual prospecting and COVID-19: the changing face of sales in a work-from-home environment

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